business profile subway 235 bourke street.pdf

5/19/2018 Business Profile Subway 235 Bourke Street.pdf

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Due Diligence Package


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Business Prole Document l Subway 235 Bourke Street Melbourne

This document is to be kept Private and Condenal Copyright held by Finn Franchise Brokers l 1

1. Your Expert Franchise Broker

Finn Franchise Brokers is a naonal franchise brokerage and we have been engaged by the

Vendor of the business presented in this document to present, negoate and nalise the sale of

their business to an approved Purchaser.

FINN FRANCHISE BROKERS

5/1335 Ferntree Gully Road

Scoresby Vic 3179Tel: (03) 9763 9200

Fax: (03) 9012 4313

www.franchisebrokers.com.au

BROKER APPOINTED

Keith Corbe

Mobile: 0408 333 978

[email protected]

Proud members of:

Franchise Council of Australia

Australian Instute of Business Brokers

[insert brokerphotograph]
http://www.franchisebrokers.com.au/http://www.franchisebrokers.com.au/


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2. Disclaimer

This Business Prole has been prepared for informaon purposes only and is not intended to form any

part of an agreement between you and the Vendor. This prole is only provided to pares who have

completed an inial enquirers quesonnaire and condenality agreement expressing an interest in

purchasing the business known as Subway 235 Bourke Street Melbourne.

The Vendor of Subway 235 Bourke Street Melbourne has engaged Finn Franchise Brokers to act as its

agent to negoate the successful sale of the business. All documents and informaon contained within

this Due Diligence Package and prior Business Prole have been supplied to Finn Franchise Brokers by the

Vendor of the business and/or their advisors, franchisor and service providers. Finn Franchise Brokers

does not warrant the informaon is correct and has not audited the businesss nancial informaon or

veried that the documents and the informaon contained within these proles are correct. All images

and graphs are for indicave purposes only.

Furthermore, no representaons or warranes expressed or implied have been made by Finn Franchise

Brokers as to the accuracy or completeness of the informaon contained within this prole and Finn

Franchise Brokers accepts no responsibility for any errors, omissions, inaccuracies or misstatements

contained within this Due Diligence Package whatsoever. Finn Franchise Brokers and the Vendor strongly

recommend that you conduct a thorough invesgaon on the business and seek independent legal,

commercial and nancial advice before proceeding to contract for the purchase of this business.

Finn Franchise Brokers and the Vendor reserve the right to amend or replace this Due Diligence Package

or any informaon contained within it at any me, and are under no obligaon to provide an amended

prole or updated informaon to you or your advisors.

This Due Diligence Package and prior Business Prole can only be distributed to your professional

advisors and consultants. You must not distribute, reproduce or use this Business Prole in any other way

without the expressed permission of Finn Franchise Brokers.

The Vendor has specically requested that you do not directly approach the Vendor, any sta, customers

or suppliers of the business without the express wrien permission of the broker appointed. Therefore,

all enquiries or requests for addional informaon must be directed to Finn Franchise Brokers and the

broker appointed.

If you decide not to proceed with the purchase of this business, within 7 business days you must return

all copies of this Business Prole and any other informaon that was supplied to you. If this Business

Prole and/or other informaon has been emailed or supplied to you electronically, you agree to

permanently delete the les from your computer and any other computer that stores this Business Prole

and other informaon.

This document remains the property of Finn Franchise Brokers.


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Other cost consideraons

Included in the sale

2011, 2012& 2013 Financial Year Profit & Loss Statements

1st July 2013 to 31st March 2014 Profit & Loss Statement

Recent Weekly Sales Report

2012/2013 Add-Back Summary

2012/2013 & 2013/2014 Financial Year Payroll Activity Summary

BAS Statements

Depreciation Schedule

Premises Lease Schedule

Franchise Agreement Schedule

Recent Staff Roster

Recent Rental Invoice

PLEASE NOTE: Copies of the following documents will be supplied to a potential purchaser

or their Solicitor during due diligence:

The Full Franchise Agreement and Disclosure Document.

Franchise Code of Conduct.

Appendices and Aachments

Photo Gallery

Form 6 Approval of Business Profile by the Vendor


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1. Business Name: Subway 235 Bourke Street Melbourne

2. Gross turnover 2013: $892,581

3. Adjusted net prot 2013: $183,136

4. Stock at Value (SAV): $7,000 -$10,000

5. Asking price: $675,000

6. Terms of purchase:

Plus bank guarantee

Sale Price plus SAV

3xmonths gross rent plus GST

7. Other cost consideraons:

7.1 Franchisor training: All training fees are included

7.2 Travel and accommodaon: Allow $2,000 minimum (2 weeks in Queens-

land)

7.3

Legal costs-

franchiseagreement: Allow $2,000 minimum

7.4 Legal costs -general advice: Allow $1,500 minimum

7.5 Legal costs -lease agreement: Allow $1,500 minimum

7.6 Lease bond/Bank guarantee: 3xmonths gross rent plus GST

Other cost consideraons


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Included in the sale

1. FitOut: The enre shop t-out including signage, cab-

inetry, stainless steel ngs and xtures.

Extensive equipment and re-t August 2013

2.

Equipment:

All of the equipment in the store that is usedto produce the products

3. Small Utensils and Appliances: All small appliances

4. Safety Equipment: First-Aid Kit x1

Fire Exnguisher x1

5.

Uniforms:

All Current sta uniforms and name badges

6. Sta: Experienced supervisory sta manage the

store while the owner manages another

Sub-

way store. All sta are trained and experi-

enced in the operaon of the store.

7. Supplier relaonships: Established relaonships with exisng suppli-

ers of products and ingredients

8. Goodwill: Goodwill associated with regular client base

since opening in 1994


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-3-

2011, 2012&2013

Financial Year Profit & LossStatements

NB: 2011 Part Year November 2010 - June 2011


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Bourke St Subwa3/235 Bourke StreetMelbourne Vic 3000

ABN: 81 123 079 229

Email: [email protected]

Created: 23-Jun-14 6:05 PM

Profit & Loss Statement

July 2012 To June 2013

This report includes Year-End Adjustments.

Page 1 of 2

Income

Sales Sales $831,948.66

Sales-GST FREE $60,632.34

Total Sales $892,581.00

Rent Rec'd - Docklands prop $5,581.64

Rent Received $5,119.51

Total Income $903,282.15

Cost Of Sales

Cost Of Sales, Food $198,328.45

Cost Of Sales - Beverage $46,084.99

Total Cost Of Sales $244,413.44

Gross Profit $658,868.71

Expenses General & Administrative Exp

Legal Fees $432.73

Bank Charges

Bank Fees $4,205.89

Merchant Fees $3,014.98

Phone $760.83

Total General & Administrative Exp $8,414.43

Subway Royalties

Royalty Payments $72,919.96

FAF Advertising Payments $40,972.51

Marketing Expenses

Advertising $550.00

Total Marketing Expenses $550.00 Operating Expenses

Repair $6,162.09

Cleaning $2,607.71

Uniforms $584.60

Total Operating Expenses $9,354.40

Employment Expenses

Wages & Salaries $322,422.56

Workers' Compensation $1,239.10

Other Employer Expenses $21,511.07

Total Employment Expenses $345,172.73

Occupancy Costs

Electricity $11,355.08

Rates $7,630.66 Rent $165,260.19

Water $317.68

Waste Removal $257.50

Total Occupancy Costs $184,821.11

Total Expenses $662,205.14

Operating Profit ($3,336.43)

Total Other Income $0.00

Other Expenses


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ABN: 81 123 079 229



Profit & Loss Statement

July 2012 To June 2013

This report includes Year-End Adjustments.

Page 2 of 2

Docklands Property Rates $1,726.55

Docklands Property Strata Fees $6,669.68Total Other Expenses $8,396.23

Net Profit/(Loss) ($11,732.66)


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LITTLEHILL PTY LTD

A.B.N.: 81 123 079 229

PROFIT AND LOSS STATEMENT

FOR THE YEAR ENDED 30 JUNE 2012

2012 2011

$ $

SALES

Sales 1,013,440.26 628,105.98

LESS: COST OF GOODS SOLD

Opening Stock 5,000.00 -

Purchases 308,831.70 169,510.61

Closing Stock (5,000.00) (5,000.00)308,831.70 164,510.61

GROSS PROFIT FROM TRADING 704,608.56 463,595.37

OTHER INCOME

Fringe Benefit Reimbursements 2,240.00 -

Interest Received 8,646.03 4,360.44

Other Income 2,280.00 -

Gross profit on rental operations 31,200.00 31,200.00

44,366.03 35,560.44

748,974.59 499,155.81

The accompanying notes form part of these financial statements.

These statements should be read in conjunction with the attached compilationreport of KAIAS PHILLIPS.

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LITTLEHILL PTY LTD

A.B.N.: 81 123 079 229

PROFIT AND LOSS STATEMENT

FOR THE YEAR ENDED 30 JUNE 2012

2012 2011

$ $

EXPENSES

Advertising & Promotion 528.00 221.76

Bank Charges 6,161.11 2,749.72

Cleaning & Rubbish Removal 1,202.31 791.55

Depreciation 21,386.94 27,031.84

Electricity & Gas 12,656.37 7,519.56

Filing Fees 226.50 218.00

Fines 1,980.00 -

Franchise & Royalty Fees 143,724.24 78,070.30

Insurance 5,621.45 3,126.98

Interest - Loans 39,464.60 22,762.70

Interest - ATO GIC 1,854.02 -

Kitchen Supplies 53.07 -

Legal Costs 5,000.00 -

Office Expenses 603.18 797.16

Owners Corporation Fees 10,524.68 6,714.28

Professional Fees - Accounting 5,165.00 9,283.00

Protective Clothing 1,059.85 -

Rates & Taxes 10,017.92 9,879.28

Registration & Subscriptions 495.45 -

Rent 174,237.46 123,601.54

Repairs & Maintenance 6,255.51 3,458.60

Security 215.00 -

Staff Amenities - 274.86

Superannuation 15,635.94 9,030.04

Telephone 1,557.81 1,164.63

Wages 335,562.67 141,976.90

Loss on Sale of Fixed Assets - 1,695.00

801,189.08 450,367.70(Loss) Profit before income tax (52,214.49) 48,788.11

The accompanying notes form part of these financial statements.

These statements should be read in conjunction with the attached compilationreport of KAIAS PHILLIPS.

Page 12


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-4-

1st July 2013 to 31st March 2014Profit & Loss Statements


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Business Profle Document l Subway 235 Bourke Street Melbourne

This document is to be kept Private and Confdenal Copyright held by Finn Franchise Brokers l 7

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Recent Weekly Sales Report


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2012/2013 Add-Back Summary


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Financial Statements Summary 2013 Financial Year

Almost all franchise businesses are fundamentally designed to be managed by an owner -

operator. It is widely accepted that overall earnings for a business owner are based on

one owner working a standard 40/hrs per week operaonally within their business.

Based on the businesses prot and loss statements supplied and with all add-backs taken

into account, the owners earnings for this business is $183,136 for the period from July

2012 to June 2013 or a healthy $3,521.85 per week.

Financial Year Ended

2013

Weekly

1. Total Revenue/Sales: $892,581 $17,165.00

2. Net Prot/Loss -$98,944 -$1,902.77

Category of Add-back 2013+ Weekly

Salaries & Wages

1. Working owner resulng in lower

wages

$40,000

Salaries & Wages

2. Owners Wage

$141,365

Superannuaon

3. Owners Superannuaon 9% $18,500

Interest -Other4.

$6,762.74

Interest -Loans

5.

$47,447.76

Fines6.

$1,560

Depreciaon7.

$18,913.71

Bank Charges8.

$7,530.87

Total Add-Backs

Total Owners Adjusted Earnings

$282,080

$183,136 $3,521.85


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2012/2013& 2013/2014Financial Year Payroll Activity Summary


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BAS Statements


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Depreciaon Schedule


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ABN: 81 123 079 229



General Ledger [Detail]01-Jun-13 To 24-Jun-14

* Year-End Adjustments

Page 1 of 1

ID No. Src Date Memo Debit Credit Job No. Net Activity Ending Balance

1-2210 Lease Improvement at Cost

Beginning Balance: $76,254.11$0.00 $0.00 $0.00 $76,254.11Total :

1-2220 Lease Improvements Accum Dep

Beginning Balance: $3,081.00cr

$0.00 $0.00 $0.00 $3,081.00crTotal :

1-2310 Bldgs & Imprvmnts at Cost

Beginning Balance: $750,537.75

5 CD 24-Jan-14 J$R Refrigeration $56,580.85 $807,118.60

$56,580.85 $0.00 $56,580.85 $807,118.60Total :

1-2320 Bldgs & Imprvmnts Accum Dep


EFT CD 26-Aug-13 Shop Front Signs $4,545.45 $36,226.79cr

EFT CD 26-Aug-13 Floors Part Payment, $1,818.18 $34,408.61crEFT CD 08-Sep-13 Shop front Part Payment $2,727.27 $31,681.34cr

EFT CD 12-Sep-13 Refrigeration, replaceme $18,181.82 $13,499.52cr

EFT CD 18-Sep-13 Balance of signage paym $2,727.27 $10,772.25cr

EFT CD 18-Sep-13 Balance of Floor payment $3,681.82 $7,090.43cr

EFT CD 23-Oct-13 Signs renovation final pa $4,545.45 $2,544.98cr

EFT CD 18-Nov-13 Bourke St Renovation Sh $1,818.18 $726.80cr

EFT CD 18-Nov-13 Bourke St Renovation Int $2,727.27 $2,000.47

EFT CD 02-Dec-13 Bourke St Renovation Cei $2,727.27 $4,727.74

EFT CD 25-Feb-14 Shop Front Renovation P $1,363.64 $6,091.38

$46,863.62 $0.00 $46,863.62 $6,091.38Total :

1-2410 Furniture & Fixtures at Cost

Beginning Balance: $0.00

EFT CD 04-Sep-13 Sharpline, Small goods p $7,272.73 $7,272.73$7,272.73 $0.00 $7,272.73 $7,272.73Total :

1-2420 Furniture & Fixtures Accum Dep

Beginning Balance: $0.00

$0.00 $0.00 $0.00 $0.00Total :

1-2600 Plant & Equipment

Beginning Balance: $29,865.24

$0.00 $0.00 $0.00 $29,865.24Total :

1-2601 Plant & Equip Accum Depn


EFT CD 13-Sep-13 Aircon & Freezer $9,090.91 $294.91

EFT CD 17-Sep-13 Electrical work relaing to $9,090.91 $9,385.82

EFT CD 07-Oct-13 Balance of Fridge and Fre $6,363.64 $15,749.46

$24,545.46 $0.00 $24,545.46 $15,749.46Total :

$135,262.66 $0.00Grand Total :


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Premises Lease Schedule


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Franchise Agreement Schedule


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Recent Staff Roster


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Recent Rental Invoice


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Form 6 -Approval of Business Prole by the Vendor


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Gallery

business profile subway 235 bourke street.pdf

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